Morgan Stanley has hired a significant Merrill Lynch Private Wealth Management team based in New Jersey and Florida as it contributes to the list of multi-million-dollar hires from the rival wirehouse.
The group includes Lawrence W. Catena, his son, Steven, Erik Beiermeister, and Mercedes Fonte in addition to three clientele associates. They’d been generating $7.5 million in annual fees and commissions, based on a person familiar with their practice, and also joined Morgan Stanley’s private wealth group for clients with $20 million or perhaps more in the accounts of theirs.
The staff had managed $735 million in client assets from 76 households that have an average net worth of fifty dolars million, based on Barron’s, which ranked Catena #33 out of eighty four top advisors in Florida in 2020. Mindy Diamond, an industry recruiter who worked with the group on the move of theirs, said that their total assets were $1.2 billion when factoring in new clients and market appreciation in the 2 years since Barron’s assessed the practice of theirs.
Catena, who spent all though a rookie year of his 30-year career at Merrill, didn’t return a request for comment on the team’s move, which occurred in December, based on BrokerCheck.
Catena made the decision to move after his son Steven rejoined the team in February 2020 and Lawrence started considering a succession plan for the practice of his, based on Diamond.
“Larry always thought of himself as a lifer with Merrill with no objective to come up with a move,” Diamond wrote in an email. “But, when the son of his, Steven, came into the business he began viewing his firm with a new lens. Would it be good enough for the life of Steven’s career?”
The move comes as Merrill is actually launching a unique enhanced sunsetting program in November which can add an extra 75 percentage points to brokers’ payout when they agree to leave the book of theirs at the firm, but Diamond said the updated Client Transition Program was not “on Larry’s radar” after he’d decided to make his move.
Steven Catena started his career at Merrill in 2016 but sojourned at Prudential Investment Management from 2017 until 2020 before rejoining, according to FintechZoom.
Beiermeister, that works separately from a part in Florham Park, New Jersey, started his career at Merrill in 2001, based on BrokerCheck. Fonte started her career at Merrill in 2015.
A spokesperson for Merrill did not immediately return a request for comment.
The group is actually a minimum of the fifth that Morgan Stanley has hired from Merrill in recent months and seems to be the biggest. Additionally, it employed a duo with $500 million in assets in Red Bank, New Jersey last month as well as a pair of advisors producing aproximatelly $2.6 million from Merrill in Maryland.
In December, Morgan Stanley lured a solo producer in California that had won asset-growth accolades from Merrill and in October hired a 26-year Merrill lifer in a Chicago suburb that was generating much more than two dolars million.
Morgan Stanley aggressively re-entered the recruiting market last year after a three year hiatus, and executives have said that for the very first time recently it closed its net recruiting gap to near zero as the number of new hires offset those who actually left.
It ended 2020 with 15,950 advisors – 482 more than twelve weeks earlier and 481 higher than at the conclusion of the third quarter. A lot of the increase came from the addition of more than 200 E*Trade advisors who work primarily from call centers, a Morgan Stanley executive said.
Merrill Lynch, that has stood by its freeze on veteran broker recruiting put in place in 2017, no longer breaks out the number of its of branch based wealth management brokers from its consumer-bank-based Edge brokerage force.